D-day or Light Brigade?

Daily update

The US affordability crisis stays in the headlines, with US President Trump suggesting a doubling of tariffs paid by US importers of Canadian cars. However, these tariffs would not take effect until 1 January and investors are likely to assume the US will retreat (this has been the pattern with similar threats).
US Treasury Secretary Bessent's economic "D-day" against Iran was short on specifics. The US intends to order countries to stop trading with Iran within a specified time, or face sanctions that (in Bessent's view) could "blow up" the global financial system. The critical question is whether the US would sanction Iran's largest oil customer (China). If not, yesterday’s announcement looks less like D-day and more like the charge of the Light Brigade.
Japan's July department store sales data offers a limited insight into consumer behavior. There was a recovery after marked weakness in June.
There are several sentiment polls due. The German ifo business poll may get some attention, as German sentiment has been catching up with economic reality recently. US consumer confidence likely remains plagued by political polarization—Trump's recent negative approval ratings (in 47 out of 50 states) could signal a more cautious outcome for the data.